cmt-20230930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from ____________ to

Commission File Number 001-12505

CORE MOLDING TECHNOLOGIES, INC.

_______________________________________________________________

(Exact name of registrant as specified in its charter)

Delaware

31-1481870

(State or other jurisdiction

incorporation or organization)

(I.R.S. Employer Identification No.)

800 Manor Park Drive, Columbus, Ohio

43228-0183

(Address of principal executive office)

(Zip Code)

Registrant’s telephone number, including area code (614) 870-5000

N/A

__________________________________________________________

Former name, former address and former fiscal year, if changed since last report.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer,” “large accelerated filer,” and “smaller reporting company,” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨

Accelerated filer ¨

Non-accelerated Filer ☒

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act. Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Name of each exchange on which registered

Trading Symbol

Common Stock, par value $0.01

NYSE American LLC

CMT

As of November 6, 2023, the latest practicable date, 9,040,704 shares of the registrant’s common stock were issued, which includes 385,320 shares of unvested stock awards.

Table of Contents


Part I — Financial Information

Item 1. Financial Statements (Unaudited)

Consolidated Statements of Operations			3

Consolidated Statements of Comprehensive Income			4

Consolidated Balance Sheets			5

Consolidated Statements of Stockholders’ Equity			6

Consolidated Statements of Cash Flows			8

Notes to Consolidated Financial Statements			9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			24

Item 3. Quantitative and Qualitative Disclosures About Market Risk			30

Item 4. Controls and Procedures			31

Part II — Other Information

Item 1. Legal Proceedings			32

Item 1A. Risk Factors			32

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of equity Securities			32

Item 3. Defaults Upon Senior Securities			32

Item 4. Mine Safety Disclosures			32

Item 5. Other Information			32

Item 6. Exhibits			32

Signatures			33

Index to Exhibits			35

Table of Contents

Part I — Financial Information

Item 1. Financial Statements

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except for per share data)

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Net sales	$	86,728	$	101,606	$	283,961	$	290,933

Cost of sales	71,450		88,303		230,380		250,015

Gross margin	15,278		13,303		53,581		40,918

Selling, general and administrative expense	9,403		8,671		29,562		25,889

Operating income	5,875		4,632		24,019		15,029

Other income and expense
Loss from extinguishment of debt	—		1,582		—		1,582
Interest expense, net	187		511		836		1,511
Net periodic post-retirement benefit	(52)		(31)		(157)		(93)
Total other expense	135		2,062		679		3,000

Income before taxes	5,740		2,570		23,340		12,029

Income tax expense	1,386		1,251		5,198		4,658

Net income	$	4,354	$	1,319	$	18,142	$	7,371

Net income per common share:
Basic	$	0.50	$	0.16	$	2.13	$	0.87
Diluted	$	0.49	$	0.16	$	2.08	$	0.87

See notes to unaudited consolidated financial statements.

Table of Contents

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Net income	$	4,354	$	1,319	$	18,142	$	7,371

Other comprehensive income:

Foreign currency hedging derivatives:
Unrealized hedge gain (loss)	(898)		(626)		208		(626)
Income tax expense (benefit)	192		159		(50)		159

Interest rate swaps:
Unrealized hedge gain	209		767		366		767
Income tax expense	(44)		(166)		(76)		(166)

Post-retirement benefit plan adjustments:
Amortization of net actuarial loss	6		43		18		130
Amortization of prior service credits	(124)		(124)		(372)		(372)
Income tax benefit	25		17		75		51

Comprehensive income	$	3,720	$	1,389	$	18,311	$	7,314

See notes to unaudited consolidated financial statements.

Table of Contents

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except for share data)


	September 30, 2023		December 31, 2022
	(Unaudited)
Assets:
Current assets:
Cash and cash equivalents	$	18,035	$	4,183
Accounts receivable, net	45,938		44,261
Inventories, net	24,988		23,871
Foreign tax receivable	5,492		2,680
Prepaid expenses and other current assets	7,679		5,670
Total current assets	102,132		80,665

Right of use asset	4,261		5,114
Property, plant and equipment, net	81,788		83,267

Goodwill	17,376		17,376
Intangibles, net	6,414		7,619
Other non-current assets	4,686		4,574
Total Assets	$	216,657	$	198,615

Liabilities and Stockholders’ Equity:
Current liabilities:
Current portion of long-term debt	$	1,310	$	1,208
Revolving debt	—		1,864
Accounts payable	28,682		29,586
Taxes payable	2,557		1,236
Contract liability	1,146		1,395

Compensation and related benefits	10,523		9,101
Accrued other liabilities	8,652		6,407
Total current liabilities	52,870		50,797

Other non-current liabilities	2,998		3,516
Long-term debt	21,982		22,986
Post-retirement benefits liability	4,815		5,191
Total Liabilities	82,665		82,490
Commitments and Contingencies
Stockholders’ Equity:
Preferred stock — $0.01 par value, authorized shares — 10,000,000; no shares outstanding at September 30, 2023 and December 31, 2022			—
Common stock — $0.01 par value, authorized shares – 20,000,000; outstanding shares: 8,655,384 at September 30, 2023 and 8,417,656 at December 31, 2022	86		84
Paid-in capital	42,565		40,342
Accumulated other comprehensive income, net of income taxes	3,222		3,053
Treasury stock - at cost, 3,992,152 shares at September 30, 2023 and 3,866,451 shares at December 31, 2022	(31,768)		(29,099)
Retained earnings	119,887		101,745
Total Stockholders’ Equity	133,992		116,125
Total Liabilities and Stockholders’ Equity	$	216,657	$	198,615

See notes to unaudited consolidated financial statements.

Table of Contents

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity

(In thousands, except for share data)

(Unaudited)

For the three months ended September 30, 2022:


	Common Stock Outstanding			Paid-In Capital		Accumulated Other Comprehensive Income		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance at June 30, 2022	8,413,655	$	84	$	39,095	$	948	$	(29,099)	$	95,594	$	106,622
Net income										1,319		1,319
Change in post-retirement benefits, net of tax $17						(64)						(64)
Change in foreign currency hedge, net of tax of $159						(467)						(467)
Change in interest rate swaps, net of tax of $166						639						639


Share-based compensation				623								623
Balance at September 30, 2022	8,413,655	$	84	$	39,718	$	1,056	$	(29,099)	$	96,913	$	108,672

For the nine months ended September 30, 2022:


	Common Stock Outstanding			Paid-In Capital		Accumulated Other Comprehensive Income		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2021	8,235,740	$	82	$	38,013	$	1,075	$	(28,617)	$	89,542	$	100,095
Net income										7,371		7,371
Change in post-retirement benefits, net of tax $51						(191)						(191)
Change in foreign currency hedge, net of tax of $159						(467)						(467)
Change in interest rate swaps, net of tax of $166						639						639
Purchase of treasury stock	(48,286)							(482)				(482)
Restricted stock vested	226,201	2										2
Share-based compensation				1,705								1,705
Balance at September 30, 2022	8,413,655	$	84	$	39,718	$	1,056	$	(29,099)	$	96,913	$	108,672

Table of Contents

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity (Continued)

(In thousands, except for share data)

(Unaudited)

For the three months ended September 30, 2023:


	Common Stock Outstanding			Paid-In Capital		Accumulated Other Comprehensive Income	Treasury Stock	Retained Earnings	Total Stockholders' Equity
	Shares	Amount
Balance at June 30, 2023	8,603,072	$	86	$	41,829	$

SEC Form 10-Q filed by Core Molding Technologies Inc